Our current tax law includes a phased in approach for how much of your Social Security benefit is included in your “taxable Income” at tax time.

Current rules:

Married filing Jointly:  if your adjusted income from all sources +50% of Social Security benefit is over $44,000 then up to 85% of your social security benefit reported on the 1099 is included as taxable income on your return.

However, there is a new bill in congress that would exempt all of your SS benefit from being included.  That would definitely help lower tax bills for retirees!

Here is a quick summary link:  https://www.thinkadvisor.com/2022/08/29/new-bill-would-repeal-all-taxes-on-social-security-benefits/

The full text of the bill is here:  https://www.congress.gov/bill/117th-congress/house-bill/8717/text/ih?overview=closed&format=txt

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James A. Daniel

James A. Daniel - Financial Planner


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